UNITED STATES OF AMERICA
Before the
SECURITIES AND EXCHANGE COMMISSION

INVESTMENT ADVISERS ACT OF 1940
Release No. 1963 / August 10, 2001

ADMINISTRATIVE PROCEEDING
File No. 3-10549

In the Matter of

CAPITAL CONSULTANTS, LLC,

Respondent.

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ORDER INSTITUTING PUBLIC
ADMINISTRATIVE PROCEEDING
PURSUANT TO SECTION 203(e) OF
THE INVESTMENT ADVISERS ACT OF
1940, MAKING FINDINGS AND
IMPOSING REMEDIAL SANCTION

I.

The Securities and Exchange Commission ("Commission") deems it appropriate and in the public interest to institute a public administrative proceeding pursuant to Section 203(e) of the Investment Advisers Act of 1940 ("Advisers Act") against Capital Consultants, LLC ("Capital Consultants").

Accordingly, IT IS HEREBY ORDERED that said proceeding be, and hereby is, instituted.

II.

In anticipation of the institution of this proceeding, Respondent has submitted an Offer of Settlement ("Offer"), which the Commission has determined to accept. Solely for the purpose of this proceeding and any other proceeding brought by or on behalf of the Commission or in which the Commission is a party, and without admitting or denying the findings contained herein, except that Respondent admits the jurisdiction of the Commission over it and over the subject matter of this proceeding and admits the entry of the Judgment of Permanent Injunction set forth in paragraph III.C., Respondent consents to the entry of this Order Instituting Public Administrative Proceeding Pursuant To Section 203(e) Of The Investment Advisers Act Of 1940, Making Findings And Imposing Remedial Sanction ("Order").

III.

On the basis of this Order and Respondent's Offer, the Commission finds that:

A. Capital Consultants (File No. 801-10887) has been an investment adviser registered with the Commission since 1975 doing business in Portland, Oregon. As of May 31, 2000, Capital Consultants was managing over $1 billion for approximately 340 clients.

B. On September 21, 2000, the Commission filed an action against Capital Consultants and others in the United States District Court for the District of Oregon. The Complaint filed in that action alleges, among other things, that Capital Consultants operated an undisclosed Ponzi scheme using client funds to make interest payments to clients invested in a failed and bankrupt $160 million loan that Capital Consultants made to Wilshire Credit Corp. ("Wilshire Credit"). The Complaint alleged that Capital Consultants continued to report to clients that the loan's value was $160 million, stating that Capital Consultants had sold the loan to two other entities and that they were making the loan payments. The Complaint further alleged that Capital Consultants failed to inform its clients that it lent an additional $71 million of client funds to the two entities to make the payments on the loan to Wilshire Credit. Capital Consultants also allegedly omitted other material information, including the fact that the entities that purchased the Wilshire Credit loan had the right to terminate their purchase agreement at any time, for any reason, and without further liability. The Complaint also alleged that Capital Consultants billed its clients invested in the Wilshire Credit loan a 3% annual management fee based on the purported $160 million value. Capital Consultants continued to sell its clients participation interests in the loan at the full cost. The Complaint further alleges that, as a result of the foregoing actions, Capital Consultants violated Section 17(a) of the Securities Act of 1933 ("Securities Act"), Section 10(b) of the Securities Exchange Act of 1934 ("Exchange Act") and Rule 10b-5 thereunder, and Sections 206(1) and 206(2) of the Advisers Act.

C. On April 30, 2001, the United States District Court for the District of Oregon entered a Judgment Of Permanent Injunction Against Capital Consultants, LLC ("Judgment"). The Judgment permanently enjoins Capital Consultants from violating Section 17(a) of the Securities Act, Section 10(b) of the Exchange Act and Rule 10b-5 thereunder, and Sections 206(1) and 206(2) of the Advisers Act. SEC v. Capital Consultants, LLC, et al., Civil Action No. CV-00-1290 (KI) (D. Ore.).

IV.

Based on the foregoing, the Commission deems it appropriate and in the public interest to accept the Offer submitted by Respondent and to impose the remedial sanction specified in Respondent's Offer.

Accordingly, IT IS HEREBY ORDERED, effective immediately, that Respondent's registration as an investment adviser is hereby revoked.